In today’s briefing:
- Dentsu BIG Buyback – Both Larger and Smaller Than It Appears
- Linmon Media (柠萌影业) Pre-IPO – Consistently Putting up a Good Show
- Vedant Fashions IPO Trading – Liked by Instis While Retail Gave It a Miss
- China Travel Intl Inv (308 HK): The Fruit Has Ripened?
- HSIE Results Daily: Berger Paints, Apollo Hospitals, Trent, Kansai Nerolac, V-MART Retail,…
- GTX: Free Cash Flow Motion
- OSP: Expect 4Q21 Earnings to Recover QoQ
- Mondelez: The True Power Of Brands
- Motherson Sumi Systems: Gradual Recovery on the Cards
- SBUX: Union, What Union?
Dentsu BIG Buyback – Both Larger and Smaller Than It Appears
- Yesterday 14 February, Dentsu announced bte profits, and guidance for 2022 which appears in-line to slightly strong in terms of revenue, slightly weak/conservative in terms of IFRS/GAAP OP.
- The company also announced what appears to be a BIG buyback.
- Looks are deceiving, but somehow not, but there are catches in both directions. If you have a flow axe, it is worth knowing the flow details.
Linmon Media (柠萌影业) Pre-IPO – Consistently Putting up a Good Show
- Linmon Media (LM HK) is looking to raise about US$300m in its upcoming Hong Kong IPO.
- Linmon Media (LM) is a content production firm that operates the full value chain of investment, production, distribution, promotion and derivatives licensing of drama series.
- In this note, we take a look at LM’s business, financials, and share our thoughts on the IPO.
Vedant Fashions IPO Trading – Liked by Instis While Retail Gave It a Miss
- Vedant Fashions raised around US$420m in its India IPO. While insti demand was decent, retail investor gave it a miss.
- It is a fashionwear company targeting the Indian wedding and celebration wear segment. According to CRISIL, it was the largest company in India in the men’s Indian wedding wear segment.
- In this note, we will talk about the trading updates and other deal dynamics.
China Travel Intl Inv (308 HK): The Fruit Has Ripened?
- Share price of China Travel International Investment Hong Kong (308 HK) (CTII) rallied 23% in last 3 months and 81% from its trough, which has well reflected the FY21 turnaround.
- Risk-Return profile looks less attractive as its P/B multiple of 0.56x only provides 14% upside to the historical average of 0.63x. In other words, safety margin has diminished.
- Macro picture turned against CTII – weaker-than-expected CNY visitors in Shenzhen, escalating Omicron cases in Hong Kong and caution on domestic tourism outlook all point to a more challenging FY22.
HSIE Results Daily: Berger Paints, Apollo Hospitals, Trent, Kansai Nerolac, V-MART Retail,…
- V-MART Retail: V-MART reported 47% growth YoY.
- Organic business (ex-Unlimited acquisition) recovered fully from the pandemic blues (INR5.74bn).
- The recent stock price correction allows us to upgrade our rating on V-MART to ADD (earlier REDUCE), as risk-reward becomes more palatable.
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GTX: Free Cash Flow Motion
- GTX is experiencing a steady improvement in the number of turbocharger units produced and sold with the Company’s management citing pent up demand from its customers
- GTX’s management’s commentary associated to the current business climate contrasted favorably from the third quarter earnings call.
- Investors are giving GTX much credit for its free cash flow abilities even though GTX reduced its Series B Preferred by $211 million in the fourth quarter
OSP: Expect 4Q21 Earnings to Recover QoQ
- We maintain BUY rating with target price at Bt36.50, based on 30xPE’22E, the three years average trading range.
- We expect OSP to post 4Q21 net profit of Bt801m (-6%YoY, +38%QoQ), a recovery from 3Q21, the lowest level since listed. QoQ improvement will be supported by recovering beverage sales
- We foresee 2022E earnings to hit record high at Bt3.6bn(+14%YoY)driven by 1) a solid revenue growth at +4.7%YoY from recovering sales in beverage sales in Thailand and new products launch
Mondelez: The True Power Of Brands
- Mondelez is facing unprecedented increases in nearly all major basic materials used, and yet the company continues to outperform its peers.
- A strong and focused brand portfolio allows the company to further improve efficiency and thus improve return on capital.
- Capital allocation at the company is characterized with a strong long-term focus and discipline which bodes well for long-term investors.
Motherson Sumi Systems: Gradual Recovery on the Cards
- Motherson Sumi (MSS) primarily serves global PV industry with wiring harnesses, vision systems (mirrors) & plastic body parts as key product lines.
- History of successful turnarounds in acquisitions and inorganic-led growth
- We value the combined entity post-merger of erstwhile SAMIL into MSSL at | 255/share on SOTP basis
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
SBUX: Union, What Union?
- As it turns out, management now expects the return to LT EBIT margins to be extended out to 2024
- Whilst revenue guidance ($32.5B to $33B) for 2022 has been reaffirmed, both EPS and EBIT expectations were tapered with an expected 200bps of incremental pressure headed their way
- As such, we can expect EBIT to reach 16.5% in 2022 (a slight improvement on 2021), before expanding across both 2023/2024.
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